When searching for a professional to help you buy or sell a home, you may notice that agents refer to themselves with different labels, like real estate agent, Realtor, and broker. But what do these terms really mean, and how do you choose the right person to represent you?
In this article, we take a close look at what a Realtor is — and when the designation does or doesn’t matter for your transaction.
What is a Realtor?
Think of "real estate agent" as the profession and "Realtor" as a club membership.
A real estate agent is licensed by the state to help clients buy, sell, or lease property for a fee.
When a real estate agent is also a member of the National Association of Realtors (NAR), a trade organization, they can call themselves a Realtor (or REALTOR®). It’s a term NAR coined in 1916 to identify its members and later trademarked.[1]
Is a Realtor always better than a real estate agent?
No, a Realtor isn’t automatically better. The designation is common and doesn’t guarantee an agent’s quality or performance. There are around 3 million active real estate agents in the U.S., and close to half are NAR members.[2][3]
However, NAR promotes the idea that Realtors are superior, investing heavily in marketing campaigns that highlight two main points:
- Realtors are experts in the real estate field
- Realtors are held to a higher ethical standard
In reality, being a Realtor doesn't automatically make an agent more qualified or ethical than others.
Are Realtors more qualified to handle my transaction?
Realtor status alone doesn’t indicate whether an agent is actually qualified.
Standards agents must meet to become a Realtor
Agents do not need a minimum level of experience to become Realtors. In fact, the membership requirements are basic enough that agents can join even before making their first sale.
These are the typical requirements to become a Realtor:
- Have a real estate license (completed pre-licensing courses and passed an exam, background check, and other state-specific requirements)
- Work with a broker who is a Realtor
- Have a record clear of recent criminal/civil penalties related to real estate activities
- Complete a short orientation course
- Agree to abide by NAR's Code of Ethics
- Complete 2.5 hours of ethics training every 3 years
- Pay local, state, and national Realtor association dues
NAR membership costs $201 at the national level, but combined with required state and local association dues, annual membership can total up to $1,000.[4] This is sometimes a significant expense for new, part-time, or low-volume agents.
What actually qualifies an agent to handle your transaction
Factors such as experience, local market knowledge, a proven track record, and positive reviews are better indicators of an agent’s ability to handle your transaction.
Justin Willard, principal broker of Willard Realty Team in South Florida and a NAR member, says that "time in the fire" — in other words, years of experience — is the most important quality. "How many years have they been in the business? There’s no substitute for time."
You’ll also want to consider an agent’s experience with your property type, as well as their pricing and negotiation skills. Working with an experienced and skilled agent can make the home buying or selling process much smoother and lead to a better outcome.
How to assess whether an agent is qualified to handle your transaction
It’s essential to do your due diligence when considering agents. Be sure to:
- Research the agent's website and social media profiles. Take note of first impressions and whether they’re affiliated with a reputable brokerage.
- Verify their license with your state’s real estate regulator.
- Read customer reviews — especially 1–3-star reviews — to spot potential issues you might encounter.
- Interview 2–3 agents.
During the interview, listen for specifics about timelines, numbers, processes, and outcomes. Ask for examples of how they handled challenges for past clients. Also, consider whether their personality and style are a good fit for you.
Review any marketing materials they provide for key data: how long they’ve been in business, the number of homes they’ve closed (both overall and in the last 12 months), and their experience in your area.
Doing this research upfront can help you avoid working with agents who may hinder your home buying or selling process.
Buyers and sellers
- How many homes have you closed in the past 12 months, and how many were similar to mine (or one I want)?
- Will I be working directly with you or a team member?
- What services will you be providing?
- Tell me about a recent transaction that was challenging. What happened, and how did you handle it?
- What’s your step-by-step process from contract to closing?
- How are you compensated, and how will that apply to my transaction?
- Can you provide me with 1–2 references from clients with similar transactions?
Buyers
- How will you help me compete in a multiple-offer situation?
- How do you evaluate whether a home is overpriced?
- How do you protect buyers during inspections and appraisals?
- How active are you in helping me find a home?
Sellers
- What do you think my home is worth, and how will you determine the right list price?
- What’s your average list-to-sale price ratio for homes like mine?
- What would your marketing plan for my home look like?
- Is there anything I need to do to get my home market-ready?
Are Realtors more ethical?
Not necessarily. Realtor status doesn’t guarantee an agent is ethical and professional.
Realtor ethics vs. agent laws
NAR promotes its Code of Ethics as a key differentiator, claiming it holds Realtors to higher standards than state law. The Code sets behavioral expectations above what is legally required.
In theory, the Code of Ethics provides consumers with an additional layer of protection against unscrupulous agents. Individual Realtor associations can fine, suspend, or otherwise discipline members who violate the code, even if the agent's actions don't technically break any laws.
However, in practice, it’s unclear how much this benefits consumers. NAR guidelines prohibit local associations from sharing disciplinary actions with the public. Unless an agent chooses to disclose past violations, you may never know if they’ve broken the Code of Ethics.
Every state has its own laws and regulations for agent conduct. While these rules may be less comprehensive than the Code of Ethics, their disciplinary process is typically more transparent. Consumers can check state licensing board websites to see if an agent has been disciplined.
Besides, an agent can behave ethically — and even commit to following NAR's Code of Ethics — without being a member of a Realtor association.
What actually indicates an agent's ethics and professionalism
What agents actually do matters more than what they claim or the labels they use. Reputable agents offer documented client experiences, transparent communication, a willingness to explain trade-offs, and clear fee structures.
You should never feel pressured to work with them, buy a home you’re unsure about, or sign with a buyer you don’t trust.
How to assess whether an agent is ethical and professional
Interviews can reveal an agent’s ethics and professionalism based on their responses. Look for clarity, transparency, and strong references.
You could also gather information by:
- Checking licensing board records and your state regulator’s site for any disciplinary action
- Scanning reviews for behavioral red flags
- Asking scenario-based interview questions
- Asking previous clients about the agent’s professionalism and ethics
Agents should also provide you with a written agreement that clearly outlines compensation.
Note: Even after signing with an agent, you have the right to end the contract and choose another professional if your agent crosses the line.
Can Realtors market my home better?
No, being a Realtor alone isn’t a reliable indicator of an agent’s marketing skills.
How Realtor status can impact marketing
Sometimes being a Realtor is helpful because of access to the MLS. An MLS is a privately run database that maintains up-to-date information about local homes for sale. Some MLS operators allow only Realtors to access the MLS, while others allow any licensed agent to subscribe.
Most agents post for-sale listings on the multiple listing service (MLS). If an agent can’t use it — because they’re not a Realtor or choose not to pay for access — your home will get far less exposure to potential buyers.
What actually indicates an agent's marketing abilities
Simply because a Realtor can post your home on the MLS as part of their membership doesn’t mean their work is done when it comes to marketing your home. Ideally, agents have a comprehensive marketing strategy and can detail for you exactly what the plan is for your home and how they’ll generate early demand.
Effective marketing impacts sales price, time on market, and the chance of attracting multiple offers, so it’s crucial that agents devote attention to this area.
How to assess whether an agent can effectively market your home
Ask agents directly for a step-by-step breakdown of their marketing plan for your home. If their answers are vague or generic, they may lack a proven strategy.
Agents can provide a sample marketing plan and explain how they would position your home. Their approach should include attracting buyers early on through:
- A data-driven pricing strategy
- Recommending strategic home improvements
- Providing staging guidance
- Professional photography, videos, drone shots, and floor plans
- Writing a compelling narrative for the listing
Once your listing is live, it should be syndicated to top home listing sites and promoted through methods such as:
- Social media campaigns
- Mailers and fliers
- Notifying agents and past clients in their network
- Holding showings
- Targeted social media ads
To verify an agent’s claims, review their recent listings and pay attention to whether:
- Listings included professional-quality photos
- There were engaging listing descriptions that highlight a home’s unique selling points
- There’s a gap between the home’s original list price and its final sale price
- Listings stayed on the market for a while before selling
The bottom line: Should I hire a Realtor?
Don’t choose a Realtor solely for the title. The outcome of your transaction depends far more on the agent’s skill, experience, and approach than on their membership status.
Start by identifying 2–3 agents that seem like they could be a good fit. Compare them using relevant data — such as recent closings of similar homes, local expertise, strong reviews, and clear explanations of their process, pricing, and negotiation strategies.
Watch for red flags in lower-star reviews, disciplinary actions, and their responses to questions about challenges. If you’re selling, require a detailed marketing plan and check their recent listings for follow-through.
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FAQ
Are all real estate agents Realtors?
No. "Realtor" is a trademarked term referring only to members of the National Association of Realtors, a private trade group for real estate professionals.
You don’t have to be a Realtor to work as a real estate agent, though about half of all agents do join NAR.
You also don’t have to be an agent to become a Realtor. NAR membership is open to other industry professionals, such as appraisers and property managers.
Why would an agent choose not to join NAR?
The main reason many agents don’t join NAR is that they can subscribe to the local MLS without joining a Realtor association.
Others may not join if their broker isn’t a NAR member or if they find the membership too expensive.
Will it cost more to use a Realtor than another real estate agent?
No. Generally, it doesn’t cost more to use a Realtor than another type of real estate agent.
Most agents work on commission, which is typically paid by the seller from the sale proceeds. The average commission is 2.5–3% of the sale price.
Sellers can save by negotiating a lower commission rate with their agent.
How do I find out if an agent is a Realtor?
You can verify an agent’s NAR membership by checking the National Association of Realtors’ online directory.
Is Realtor always capitalized?
NAR prefers “REALTOR®” but also accepts it without the registered trademark. It also accepts “Realtor” with or without the trademark. The only form not accepted is “realtor” in all lowercase.[5]
People often use “realtor” generically, but agents who aren’t NAR members can face legal action if they use any form of the word in connection with their name.
What is the difference between a broker and a Realtor?
Broker and Realtor are separate terms. A broker is a real estate agent with an advanced license and education, and they can manage other agents. A Realtor is someone with a NAR membership. A broker who joins NAR can also call themselves a Realtor.
